Standard Approach to Risk Management for Offshore Operations R.T. Lokken Chief Offshore Engineer ExxonMobil Upstream Research Company May 12, 2014
Offshore Operations Involve Many Operational Risks DRILLING LOGISTICS PRODUCTION CONSTRUCTION WELL INTEGRITY AVIATION PERSONNEL SAFETY FACILITY INTEGRITY SECURITY 2
Safety, Health & Environmental Excellence the road to safety excellence must be built on an integrated comprehensive safety management system operating within a supportive culture and driven by strong leadership. - Rex Tillerson, C.E.O. Exxon Mobil. 3
Safety, Health & Environmental Excellence the road to safety excellence must be built on an integrated comprehensive safety management system operating within a supportive culture and driven by strong leadership. - Rex Tillerson, C.E.O. Exxon Mobil. OIMS Operations Management System 4
Management System Relies on Multiple Barriers to Manage Risks Initiating Events OIMS Equipment Processes People Undesired Consequences Design Standards Equipment Strategies Facilities Surveillance Facility Integrity Well Integrity Operating Procedures Work Management Hazard ID (HAZOP/Security) Change Management Risk Assessment & Risk Management Leadership Communication Personal Accountability Competency and Training Enabling People to Act 5 5
Risk Assessment & Management System Purpose: Facilitate the identification, evaluation, understanding, and management of risks in a structured and prudent manner. Risk Management System Objectives: Hazards are discovered, a key step Risk assessments are performed by qualified, experienced personnel. Common process used to assess risk: For all risks process safety, security, aviation, health, etc. Consistent around the world. Best options to eliminate or mitigate the risk are determined. Appropriate level of management decides on the timely course of action. Action plan is developed and tracked to closure. Risk and associated action plan is communicated to those affected. Risk is eliminated or reduced to an acceptable level. Learnings are shared across the organization. 6
Assessing Operational Risk A defined, structured process Based on global standards Same for offshore & onshore Assessment chartered by a line owner Qualified team leader Multi-disciplined team operations, engineering, subject matter experts Hazard identification Planned HAZOP, HAZID, Checklists Triggered Facility / Well surveillance, inspection results, observations Risk Screening Determine if hazard is potentially significant Scenario Based Risk Assessments useful for most decisions Qualitative process Event trees describe the scenario Probabilities based on experience and data Risk assessed on matrix Transparent process 7
Assessing Operational Risk A defined, structured process Based on global standards Same for offshore & onshore Assessment chartered by a line owner Qualified team leader Multi-disciplined team operations, engineering, subject matter experts Hazard identification Planned HAZOP, HAZID, Checklists Triggered Facility / Well surveillance, inspection results, observations Risk Screening Determine if hazard is potentially significant Scenario Based Risk Assessments useful for most decisions Qualitative process Event trees describe the scenario Probabilities based on experience and data Risk assessed on matrix Transparent process Control Valve Closes and Compressor Surges Seal Fails from Vibration Cloud Disperses Cloud Ignites EVENT TREE Un-ignited Release Fire and Explosion No Injury Injury Seal Does Not Fail Near Miss 8
Assessing Operational Risk * A defined, structured process Based on global standards Same for offshore & onshore Assessment chartered by a line owner Qualified team leader Multi-disciplined team operations, engineering, subject matter experts Hazard identification Planned HAZOP, HAZID, Checklists Triggered Facility / Well surveillance, inspection results, observations Risk Screening Determine if hazard is potentially significant Scenario Based Risk Assessments useful for most decisions Qualitative process Event trees describe the scenario Probabilities based on experience and data Risk assessed on matrix Transparent process Control Valve Closes and Compressor Surges Seal Fails from Vibration Cloud Disperses Cloud Ignites EVENT TREE Un-ignited Release Fire and Explosion No Injury Injury Seal Does Not Fail Near Miss *Risk Assessment Matrix from U.S. Army Field Manual (FM 5-19) 9
Initiating Events Goal: Risks Reduced to an Acceptable Level Risk Assessments provides information for decision-making to prevent or mitigate the undesirable consequences of potential incidents. Line management makes the decision Higher the risk the higher-up the decision maker Priority on higher risks Decision maker determines acceptable risk level based on Company and industry standards Effectiveness and reliability of multiple barriers Judgment Equipment Processes People Acceptable Acceptable Risks Risks 10